Market News

Soybeans able to eke out firm finish

Soybeans were modestly higher on commercial and technical buying. It was an up and down day for beans, with some influence from soybean products and support from tight domestic and global supplies. Most forecasts have more harvest delays in parts of Brazil against welcome rain in Argentina and other areas of Brazil. According to reports, Brazil exported 2.9 million tons of soybeans during February, down 40.1% on the year, partially because of the much slower than normal harvest. Stateside, the trade is waiting for the USDA reports out at the end of the month. The Allendale, Inc. farmer survey has soybean planted area at 90.317 million acres, with harvested area of 89.274 million and an average yield of 51.1 bushels per acre, for production of 4.558 billion bushels. Soybean meal and oil were both mixed on spread adjustments. Meal is watching demand, especially demand in China, and oil saw pressure for most of the day from lower vegetable oils heading into the U.S. session.

Corn was mixed, adjusting old crop/new crop spreads. Corn is also watching conditions in South America, especially the slow second crop planting pace in Brazil, along with early planting activity in parts of the U.S., including delays in parts of the south and Delta. The annual farmer survey by Allendale pegs corn planted area at 92.828 million acres, with harvested area of 84.831 million, a yield of 179.7 bushels per acre, and record production of 15.24 billion bushels. The USDA’s prospective planting report is out March 31^st, along with quarterly stocks data. China bought 1.156 million tons of old crop U.S. corn Tuesday morning, the first announced sale of any U.S. commodity to China since January 29^th. There are reports China is stepping up armyworm controls because of favorable conditions in other parts of Asia. Ethanol futures were lower. The U.S. Energy Information Administration’s weekly ethanol production and stocks numbers are out Wednesday.

The wheat complex was mixed, with Chicago and Kansas City closing steady to firm and most Minneapolis contracts finishing the session on a weak note, but above the lows. The recent precipitation in the central and southern U.S. Plains helped soil moisture levels and condition ratings improve, but areas further north will need more ahead of spring wheat planting. Global crop conditions are generally good and the global supply outlook is bearish, with the next set of USDA projections out April 9^th. The European Union’s crop monitoring agency MARS says winter grain crops are in “fairly good condition” with yields expected to be up on the year. The Allendale acreage survey puts planted area for all types of wheat at 46.406 million acres, including 32.205 million acres of winter wheat and 12.465 million acres of non-durum spring wheat. Harvested area is projected at 38.702 million acres, which with a trend-line yield of 49.4 bushels per acre would put production at 1.91 billion bushels. DTN says Japan is tendering for 135,603 tons of food wheat.